I do the food shopping for the family, and I can attest to this personally: prices have been increasing for about a year now. More accurately, the per-unit prices have increased; the actual vendor’s product typically either has a higher sales price for the same amount of product as a year ago, or else offers less product in order to avoid ‘raising prices.’ I’m seeing more ‘price freeze’ promotions from supermarkets – which means that the supermarkets are just eating the increased costs themselves in order to keep their customer base.
This should not surprise anybody. We’re deliberately restricting energy production in this country, which inevitably leads to higher fuel prices, which inevitably leads to higher retail prices for everything that relies on fuel for transport*. We’re also subsidizing the conversion of perfectly good foodstock into a relatively inefficient fuel in order to placate Leftist religious fanatics, and never mind the implications for food prices at home and geopolitical stability abroad. Right now the major thing keeping this from being a major political headache is because our old – which is to say, pre-2007** – economic model was very, very good at keeping even our poor adequately fed by historical*** standards; we’re still coasting on that.
We might even be able to coast on it until the grown-ups get control back.
Via Zero Hedge, via Instapundit.
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